As uncomfortable as it might seem, businesses that are on the verge of bankruptcy have an advantage that many others miss: They know exactly what their financial situation is.
But not every business knows where the money is going. Surprisingly enough, countless small companies are wasting tons of capital every day. However, because the waste doesn’t affect their profitability, it is unlikely to get noticed. There are, however, some telling signs for those who know where to look. First of all, a company that can maintain its books in the green without registering any remarkable profit is likely to spend more money than it is necessary along the way. Additionally, if you find that your financial situation is static throughout an entire period, there might be many explanations. However, when customer data reveal that demands and transactions are increasing, it’s highly probable that your company is generating an additional loss. The safest way of knowing whether you’re wasting money is to check whether you’re making any of the following mistakes:
#1. You don’t know how to take care of your employees
Your employees are your most valuable asset. The business idea and the market know-how fall flat if you don’t have people inside your company who embrace your vision. Keeping your employees as satisfied as possible is not just an HR strategy to boost your profile as an employer. It also ensures that you can maintain productivity and profitability. Ultimately, recruiting comes at a high cost, and if your company is constantly looking to replace team members, you’re going to be losing a ton of money in the process! However, too many business managers continue to fall in the bad boss trap. Your employees require a welcoming, engaging, and safe work environment, both physically and emotionally. Failure to provide the team with the care they deserve can have dramatic consequences on your productivity and turnover rate.
#2. You don’t make the most of your existing customers
The first rule of doing good business is to keep your customers satisfied. A satisfied customer is a customer who is more likely to come back for more. However, the days of waiting for their next purchase to occur are long gone. If you haven’t yet switched to remarketing strategies, you are missing out on a huge opportunity. In a nutshell, Google Remarketing – which you can get via the Google AdWords platform – lets you increase your leads, clients, and ROI at an incredibly low cost. Admittedly, not online marketing option comes for free. But remarketing campaigns ensures that known visitors to your website are served relevant ads for the next 30 to 90 days after browsing. You can also directly target customers who have made a recent purchase. However, the idea of targeting visitors is brilliant because nobody commits to purchase after only one visit. However, by reminding them of your brand and your offering, you increase the number of interactions they have with your company and boost your chances of a positive conversion – remarketing gets 60% higher conversion rates among retargeted customers and visitors.
#3. You’re wasting your budget unknowingly
Are you confident about your tax calculations? For a lot of companies, if the taxman is happy, then everything must be good. In reality, you might be paying more taxes than you should. Indeed, many small and medium-sized businesses struggle to get their head around regulations and deductive exceptions, which can lead to missing out on profitable opportunities. Additionally, by failing to work with a professional accounting software tool, you can also experience issues with keeping your books in one place and developing your financial strategy. It’s also worth noting that knowing how to handle your taxes can not only free up valuable time but also make room for growth by ensuring your budget is appropriately utilized.
#4. Your lightbulb moment comes at a cost
As a rule of the thumb, businesses are paying up to 20% more than they need on their energy bills. Unfortunately, energy wastes happen every day and are too easily ignored by staff and managers. The reason. The premises tend to be taken for granted, and, as a result, the energy consumed in the workplace doesn’t seem to matter. Before you can cut down your costs, you need to create an eco-friendly environment where the business cares for its footprint on the planet. Lightings and HVAC systems are the most power-hungry elements!
#5. You can’t keep your brand consistency
Did you know that customers struggle with B2B branding? Indeed, too many small businesses fail to maintain brand consistency across multiple platforms, leading clients who have received an insightful newsletter to be disappointed by the obsolete Twitter info or the lack of user-friendly design on the website. Because your online presence is fragmented, it’s at risk of being handled by a variety of teams who may not be talking to each other. Unfortunately, as modern digital users are tech savvy, they will not be able to see past the disparities, which can affect your business profits.
#6. You can’t give 110%. Period.
Being successful is just a matter of giving all you’ve got, right? You couldn’t be more wrong! The myth of the hard-working employee who always exceeds expectations is unrealistic. The truth is that by giving an extra 10% on a project, you are putting yourself under a lot of pressure. Going the extra mile all the time isn’t possible. It affects your productivity, your concentration, and the overall business. Ultimately, working longer on one project means that you’ve got less time for others, because, no matter what you do, your day still has a limited number of hours! You’ll have to sacrifice something along the way.
#7. You think you know better than customers
Last but not least, your customers are a valuable source of information. Negative feedback can be especially enlightening as it provides entrepreneurs who can listen with an improvement strategy. Don’t miss an opportunity to survey your customers! The more you know, the better you can get.
From missed out opportunities to failures to adjust to a current situation, the sooner you identify to money pitfalls in your business, the sooner you can start generating high profits. However, where you have to draw the line is when saving money becomes an objective. Your savings are designed to support growth!